Technical Analysis

Gold trades between 100 and 200 hour MA.

Gold bounced off 200 hour MA – and other technical levels – at the lows today

The price of gold is currently trading near unchanged levels on the day, and trades between MA support below and MA resistance above.

Looking at the hourly chart above, the price low today reached to the 200 hour MA (green line) and stalled. Also at the low was swing lows from June 4 and the 38.2% retracement of the move up from the May 30 low. That cluster of support attracted buyers as risk was defined and risk was limited. 

On the topside, the 100 hour MA (blue line currently at $1331.74) is topside resistance on more upside momentum.  The price fell below that MA yesterday and has remained below that level since that time.

The formation is head and shoulder-ish.  As a result, look for sellers near the 100 hour MA and on a break of the $1320.33 neckline area, should solicit more selling. 

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